Accounting

9. Under what circumstance can one corporation control another without owning a majority of the controlled corporation's voting shares 10. P Corporation owns 75% of S Corporation, and S Corporation owns 55% of T Corporation. Is T a subsidiary of P? 11. . P Corporation buys 80 percent of S Company on January 1, 2013, for $150,000. At the time, S's common stock was $100,000 and retained earnings totaled $80,000. It was determined that S's assets and liabilities were all at their fair value except for land. The trial balances of P and S on December 31, 2013, are listed below. P Corporation S Company Debit Credit Debit Credit Cash $ 25,000 $ 10,000 Receivables (net) 10,000 11,000 Inventory, January 1 15,000 9.000 Investment in S 150,000 Plant and equipment (net 225,000 185,000 Land 100,000 80,000 Accounts payable $ 24,000 $ 10,000 Other liabilities 80,000 100,000 Common stock ($10 par) 250,000 100,000 Retained earnings, January 135,000 80,000 Dividends declared 15.000 20,000 Sales 130,000 75,000 Dividend income 16,000 Purchases 55,000 25,000 Expenses 40,000 25.000 $635,000 $635,000 $365.000 $365,0 00 Inventory, December 31 $12,000 $10,000 A. Find the difference between implied and book value B. Record the entries in P's books to reflect its transactions with Shark in 2013, assuming the cost method